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Popular NYC nightclubs to be auctioned

By Associated Press

NEW YORK, August 6 - Two Manhattan nightclubs that have long been trouble

spots with police and New York City officials will be auctioned, according to

a published report.

The clubs, the Tunnel and Limelight, will be auctioned off to the highest

bidder in U.S. Bankruptcy Court on Aug. 13. Peter Gatien, who owns the

troubled nightclubs, has said he is ready to end his years-long battle with

City Hall. City officials have complained that the Tunnel is a magnet for

drugs and violence.In April, a 16-year-old patron was stabbed to death in a

parking lot near the Tunnel. Two years ago, an 18-year-old died of a drug

overdose there. The Chelsea nightspot has become a central target in Mayor

Rudolph Giuliani's aggressive nightclub enforcement effort.Before bankruptcy

Judge Robert Gerber ordered the auction sale, Gatien said in June that he was

ready to sell the Tunnel privately and move on -- needing to pay off taxes he

owes the state. Gatien's debt includes more than $5.7 million in state taxes

and $2 million in back rent.Gatien doesn't own the buildings, but the court

will sell the club's names, leases, equipment and liquor licenses.

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